Morimatsu International Holdings Company Limited (2155) AI Stock Analysis

• Market Cap: HK$12.65B
• Dividend Yield: 1.57%
• Average Volume (3M): 5.33M
• Price to Earnings (P/E): 15.7
• Beta (1Y): 1.19
• Revenue Growth: -13.95%
• EPS Growth: -13.61%
• Country: HK
• Employees: 4,347
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.30
• Shares Outstanding: 1,245,419,000
• 10 Day Avg. Volume: 3,954,504
• 30 Day Avg. Volume: 5,326,687
• PEG Ratio: -0.52
• Price to Book (P/B): 1.02
• Price to Sales (P/S): 0.74
• P/FCF Ratio: 7.12
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: HK$11.00 ▲(20.09% Upside)

The score is primarily driven by solid financial performance (strong margins, cash flow quality, and very low leverage). Technicals add support with price trading above key moving averages and positive MACD, while valuation is reasonable but not especially cheap and the dividend yield is modest.

Positive Factors

Low Financial Leverage

A very low debt-to-equity ratio provides durable financial resilience, reducing refinancing and default risk. Over 2-6 months this supports stable operations, ability to pursue large project bids, fund working capital and capex internally, and absorb cyclical shocks without stressing liquidity.

Strong Cash Generation

High cash conversion indicates earnings quality and persistent ability to fund operations and reinvest. Durable free cash flow near net income supports maintenance of long-term contracts, selective capital expenditure and reduces reliance on external capital during industry cycles.

Healthy Profitability Margins

Sustained gross and net margins reflect manufacturing efficiency and pricing power in engineered equipment. Over months these margins underpin reinvestment capacity, maintain return on equity, and offer a buffer against input cost swings, supporting long-term competitiveness.

Negative Factors

Revenue Decline Trend

Material year-over-year revenue decline signals weakening order intake or execution timing in a project-driven business. If this trend persists it can compress margins, reduce free cash flow and impair capacity to invest or bid on new contracts over the next several quarters.

Exposure to Cyclical End Markets

Concentration in oil, gas, chemical and power exposes revenue to commodity cycles and capex timing. Project-based contract timing amplifies volatility in bookings and utilization, making medium-term revenue and margin stability contingent on sector investment cycles.

Asset Contraction and CapEx Variability

A slight decline in total assets alongside noted capex fluctuations suggests uneven investment or disposal timing. Over the medium term this can constrain capacity for new projects, signal underinvestment or inefficient asset use, and increase operational volatility.

Morimatsu International Holdings Company Limited Business Overview & Revenue Model

Company Description

Morimatsu International Holdings Company Limited designs, manufactures, installs, and operates and maintains process equipment, process systems, and solutions primarily for chemical, biological, and polymerization reactions in China and internationally. The company's pressure equipment primarily includes heat exchangers, tanks, reactors, and towers. It offers bioreactor systems and fermenters, parallel bioreactor systems, culture medium, pharmaceutical solutions, online solution preparation systems, harvest systems, buffer solution preparation and storage system, inactivation and CIP workstation systems, isolators, disposable magnetic mixing systems, disposable solution storage and mixing systems, modular factory, and clean decorators, as well as disposable magnetic mixing systems and wave reactors. The company also provides design, verification, maintenance, digital operation and maintenance, and other related services. It offers its services to oil and gas, new chemical materials, pharmaceuticals, raw materials for power batteries, water treatment, new energy, consumer goods, electronic chemicals, and other industries. Morimatsu International Holdings Company Limited was founded in 1990 and is headquartered in Shanghai, China.

How the Company Makes Money

Morimatsu International Holdings generates revenue primarily through the sale of pressure vessels and related equipment to industries such as oil and gas, chemicals, and energy. The company’s revenue model is based on project-based contracts, where it earns income through the design, engineering, and manufacturing phases of each project. Key revenue streams include direct sales of manufactured equipment, long-term maintenance contracts, and engineering consulting services. Additionally, Morimatsu may benefit from strategic partnerships with major players in the sectors it serves, enhancing its market reach and operational capabilities, which contribute to its overall earnings.

Morimatsu International Holdings Company Limited Financial Statement Overview

Summary

Morimatsu International Holdings demonstrated strong financial performance with consistent revenue growth and healthy profitability margins. The company maintained a solid net profit margin and low financial leverage, enhancing its financial stability. However, slight declines in revenue and net income suggest challenges in sustaining top-line growth.

Income Statement

Morimatsu International Holdings demonstrated strong financial performance with consistent revenue growth and healthy profitability margins over the years. Gross profit margin for 2024 stood at 29.7%, showing efficiency in cost management. The company maintained a solid net profit margin of 10.6% in 2024, indicating strong profitability. However, slight declines in revenue and net income compared to 2023 suggest challenges in sustaining top-line growth.

Balance Sheet

The balance sheet reflects strong financial stability with a low debt-to-equity ratio of 0.06 in 2024, indicating low financial leverage. Return on Equity (ROE) improved to 14.6%, showcasing effective utilization of shareholders' equity. The equity ratio stood at 56.7%, signifying a robust equity base. Despite these strengths, total assets slightly decreased, indicating potential asset management challenges.

Cash Flow

The company displayed significant improvement in free cash flow, growing from a previous period, enhancing liquidity. The operating cash flow to net income ratio was robust at 1.56, highlighting efficient cash generation relative to net income. The free cash flow to net income ratio of 0.98 shows strong cash flow alignment with profitability, though capital expenditure fluctuations reflect ongoing investment activities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.16B	6.95B	7.36B	6.49B	4.28B	2.98B
Gross Profit	1.82B	2.06B	2.06B	1.79B	1.18B	844.10M
EBITDA	882.66M	1.12B	1.14B	890.68M	564.95M	430.56M
Net Income	699.10M	737.24M	844.68M	669.27M	381.84M	289.38M
Balance Sheet
Total Assets	9.66B	8.91B	8.93B	7.96B	5.70B	3.03B
Cash, Cash Equivalents and Short-Term Investments	3.17B	2.99B	2.23B	1.62B	1.55B	424.43M
Total Debt	305.03M	295.79M	384.33M	467.40M	373.88M	446.15M
Total Liabilities	4.14B	3.63B	4.54B	5.14B	3.69B	2.04B
Stockholders Equity	5.29B	5.05B	4.38B	2.82B	2.01B	998.31M
Cash Flow
Free Cash Flow	635.20M	721.79M	100.50M	38.09M	730.26M	25.90M
Operating Cash Flow	838.32M	1.15B	671.28M	905.15M	1.17B	155.65M
Investing Cash Flow	-270.81M	-765.72M	-408.13M	-1.15B	-448.13M	-135.77M
Financing Cash Flow	-101.58M	-144.06M	506.98M	57.05M	445.06M	-30.61M

Morimatsu International Holdings Company Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.16
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2155, the sentiment is Positive. The current price of 9.16 is above the 20-day moving average (MA) of 9.16, below the 50-day MA of 9.25, and above the 200-day MA of 8.18, indicating a bullish trend. The MACD of 0.28 indicates Negative momentum. The RSI at 66.32 is Neutral, neither overbought nor oversold. The STOCH value of 76.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2155.

Morimatsu International Holdings Company Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2155	77 Outperform	HK$12.65B	15.71	13.83%	1.57%	-13.95%	-13.61%
1286	76 Outperform	HK$10.59B	15.43	14.15%	3.23%	2.87%	17.03%
1133	74 Outperform	HK$40.36B	16.89	15.06%	1.44%	34.78%	98.79%
2722	65 Neutral	HK$7.92B	12.74	7.29%	2.50%	11.18%	46.57%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
0658	45 Neutral	HK$3.11B	-0.46	-69.18%	―	-4.88%	-860.80%
0187	42 Neutral	HK$6.84B	-542.50	-0.43%	―	7.11%	77.53%

Morimatsu International Holdings Company Limited Corporate Events

Morimatsu International Director’s Passing Triggers Temporary Non-Compliance With HKEX Rules

Morimatsu International Holdings has announced the passing of independent non-executive director Kanno Shinichiro, who also served on the audit and remuneration committees and was recognized by the board for his professional expertise and long-standing contributions to the company’s decision-making. His death leaves the company temporarily non-compliant with Hong Kong listing rules regarding the minimum number and board proportion of independent non-executive directors, as well as the required composition of its audit and remuneration committees; Morimatsu said it will appoint new independent directors as soon as reasonably practicable to restore full compliance and will issue further announcements when appropriate.

The most recent analyst rating on (HK:2155) stock is a Hold with a HK$9.00 price target. To see the full list of analyst forecasts on Morimatsu International Holdings Company Limited stock, see the HK:2155 Stock Forecast page.

Morimatsu International Sets Out Board and Committee Structure

Morimatsu International Holdings Company Limited has disclosed the current composition of its board of directors, listing five executive directors, one non-executive director serving as chairman, and two independent non-executive directors. The company has also confirmed the membership and chairmanship of its three core board committees—audit, remuneration and nomination—clarifying that independent non-executive directors chair the audit and remuneration committees, while the chairman of the board leads the nomination committee, underscoring its corporate governance framework and oversight structure for stakeholders.

The most recent analyst rating on (HK:2155) stock is a Hold with a HK$9.00 price target. To see the full list of analyst forecasts on Morimatsu International Holdings Company Limited stock, see the HK:2155 Stock Forecast page.

Morimatsu International Announces Connected Lease Transaction

Morimatsu International Holdings Company Limited announced a connected transaction involving a lease agreement between its subsidiary, Morimatsu Heavy Industry, and Morimatsu Chemical. The agreement, effective from January 2026 to November 2027, involves leasing office premises in Shanghai, with the transaction recognized as an acquisition of assets valued at approximately RMB17.8 million. This move is subject to reporting and announcement requirements under the Hong Kong Listing Rules, but it is exempt from shareholder approval due to its size.

The most recent analyst rating on (HK:2155) stock is a Hold with a HK$9.00 price target. To see the full list of analyst forecasts on Morimatsu International Holdings Company Limited stock, see the HK:2155 Stock Forecast page.